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FDA: No money for inspections?

Most Americans don't want to be poisoned by medications or components used to make medications which come from overseas. Imports from China come to mind.

Over the last month, the government has disclosed that over 80 people in the US have died from tainted Heparin, a blood thinner. So far, the most likely cause is problems with a basic ingredient for the drug which is made in China.

Now word comes that for just $70 million, inspections could be much better and more widespread. That is $70 million dollars which could save lives and protect consumers from bad drugs. Only $70 million.

According to The Wall Street Journal the FDA "would need about $15 million to inspect about 700 facilities in China alone." That seems like a very modest investment.

Continue reading FDA: No money for inspections?

Baxter International (BAX) faces more heparin problems

The blood thinner Heparin, used for surgery and dialysis has now killed 81 people in the US. According to The New York Times, "The F.D.A. has identified 12 Chinese companies that have supplied contaminated heparin to 11 countries." The contamination that caused the problems appears to come from manufacturers in China.

The news reopens the question of who is at fault when China ships bad products to the US. Companies like Mattel (NYSE: MAT) and Baxter (NYSE: BAX), a big heparin supplier, would like to blame the Chinese. Alternatively, they could say that the FDA does not have enough inspectors to keep up with drug components imported from the big Asian country.

But all of that is a dodge. Any company that sells a product should ultimately be responsible for that product's safety no matter what the current law says. Baxter makes the money on heparin, why should another entity be responsible for making sure its is safe?

Baxter might argue that it cannot sell heparin at a profit if all of the inspection responsibility falls to it. If so, it should exit the business and leave it to a company that can. All of those people who died would probably agree.

Douglas A. McIntyre is an editor at 247wallst.com

Newspaper wrap-up: Patent win may boost multimedia phone supplier

MAJOR PAPERS:
OTHER PAPERS:
  • According to FDA commissioners, the New York Times reported that Baxter International Inc's (NYSE: BAX) critical blood thinner heparin, which has been linked to nearly 20 deaths and whose base was created in China, contained a "possibly counterfeit" ingredient that "mimicked the real drug."
  • In his opening arguments in the state of Alaska's lawsuit against Eli Lilly & Company (NYSE: LLY), an attorney for the state alleged the drug maker failed to warn doctors and patients of dangerous side effects associated with its drug Zyprexa, the Associated Press reported.

Newspaper wrap-up: American Capital Strategies tied to Baxter's Heparin generic problems

MAJOR PAPERS:
  • The Wall Street Journal reported that the focus of reports of four deaths and 350 allergic reactions to Baxter International Inc's (NYSE: BAX) generic version of the blood thinner drug Heparin, and the ingredients supplied by a Chinese manufacturer, also includes Wisconsin-based Scientific Protein Laboratories, a co-owner of the Chinese manufacturing plant, and majority owned by American Capital Strategies Ltd (NASDAQ: ACAS), a Maryland buyout firm.
  • Citigroup Incorporated (NYSE: C) has suspended investors at its CSO Partners hedge fund from withdrawing their money after they attempted to pull more than 30% of the fund's nearly $500M in assets, the Wall Street Journal reported.
  • AT&T Inc (NYSE: T) is seeking more revenue from India as it tries to expand its consumer mobile phone operations outside the U.S, the Financial Times reported.
OTHER PAPERS:
  • According to the New York Times, the FDA broke its own rules by approving for sale Baxter International's Heparin without first inspecting a Chinese plant where the drug's key ingredient is made.

Newspaper wrap-up: Investigated ingredient in Baxter's generic heparin drug made in China

MAJOR PAPERS:
OTHER PAPERS:
WEB SITES:

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Last updated: November 10, 2009: 11:31 AM

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